Sage Advice Quarterly Market Review 3Q2001

The economic expansion is still breathing, but the dial measuring its life-support systems has moved precariously close to zero. What’s more, the prognosis for survival is shaky at best as there is little on the near-term horizon that could remedy the primary debilitating force responsible for the patient’s malaise — slumping capital spending. To be sure, Doctor Greenspan is pulling out all stops to win this life and death battle, and will continue to supply the needed ratecutting oxygen to keep the expansion alive. With the help of $40 billion in tax rebates now in the mail, the economy may just pull through — but it will be a close call to say the least.